The rising cost of living has been well documented over the last year, with 83% of adults in the UK reporting an increase in their cost of living in March 2022*.
Price increases have come across the board with multiple industries being heavily impacted; Energy, Water, Retail, Telecommunications and Entertainment are just some of the industries who have seen major hikes in operating costs, due to increasingly difficult market factors, which has had the knock-on effect on consumer pricing.
The Water Sectors regulatory body, Ofwat, has reported that 1 in 3 customers are struggling to pay their bills** while the number of English Households in “fuel stress” will double from 2.5m to 5m due to April’s price cap changes***. These statistics are indicative of the wider financial pressures being felt by consumers with more than 14 million people in the UK now categorised as having ‘low financial resilience’, with a further 27 million showing signs of financial vulnerability***.
Except for the obvious and possibly unfeasible lowering of prices, what steps can businesses take to support their customers through, what will be for many, a difficult financial period?
1. Support vulnerable customers
With 53% of the UK adult population now having characteristics of financial vulnerability*** it’s imperative that companies are correctly identifying and supporting their vulnerable customers. These customers are more likely to struggle to pay bills and can be difficult to communicate with, as they often don’t want to talk on the phone and may not reply to letters.
To support these customers, you should be giving them options; both in what channel they prefer to communicate through and how they can pay and manage their bills.
2. Enable two-way communication
A lot of companies fall into the trap of one-way communication, they share product information, inform of system updates, make requests for payments, and send a whole host of other business messages. But they either make it difficult or sometimes impossible for a customer to respond. With the financial stress consumers are under businesses need to make them feel like they are valued and being heard, or they will very quickly see their customer satisfaction drop significantly.
Giving customers the power to communicate back ads massive value. By enabling them to easily offer feedback or update on issues affecting them, such as struggling to pay bills, businesses can build better customer experiences and increase the positive connotations customers have towards them.
3. Ask For Feedback
Gathering feedback is essential for any business to understand their customers pain points and to inform themselves on how they can best address any issues. It also helps to build trust with customers as they will feel heard and valued when issues do get resolved.
However, it is important that any surveys or questionnaires are done at the right time through the right channel and where possible not too time consuming, it should be quick and easy for the customer to complete.
4. Make paying easier and more flexible
Many companies continue to only offer limited payment options to their customers. For example, direct debit and online payments are well establish, standard methods of payment but have negative aspects for many. Direct debit can be mistrusted if a bill price fluctuates regularly and paying online can be painful if a host of information is needed before a payment can be completed. That’s not to mention vulnerable customers who may need more support in their payment options.
With today’s technology there is no reason not to offer wider ranging more flexible choices to consumers; from digital wallets and one-step payments to pre-payment and promise to pay functionality the more choice and flexibility businesses offer the better they can improve payment rates and reduce your debt books.
Support your customers with ReviveCollect Flex
ReviveCollect Flex allows you to open the lines of communication with those hard-to-reach customers creating personalised customer journeys which support your customers needs while ensuring you accelerate payment rates, reduce your debt book & drive down operating expenses.
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